ISSUE OF SHARES I OVER SUBSCRIPTION I PRO-RATA I CLASS 12 COMPANY ACCOUNTS

ISSUE OF SHARES I OVER SUBSCRIPTION I PRO-RATA I CLASS 12 COMPANY ACCOUNTS
Welcome to Commerce Shruti! In this video, we explore the important concept of issue of shares with a focus on over subscription and pro rata allotment, a key topic in Class 12 Company Accounts.
When a company receives applications for more shares than it has offered, the situation is called over subscription. To manage this, companies often allocate shares on a pro rata basis, meaning shares are allotted in proportion to the number of shares applied for.
In this session, we break down the journal entries and step-by-step calculations required for handling pro rata allotment in cases of over subscription. To reinforce your understanding, we solve a detailed practical question demonstrating how to calculate application money, allotment money, and share capital adjustments under the pro rata allotment process.
This video is perfect for students preparing for exams or anyone looking to master the fundamentals of Company Accounts.
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